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Reinsurance (Tables)

9 Months Ended

Sep. 30, 2025

The following table summarizes the quota share reinsurance coverage that Essent Re has provided to Essent Guaranty for the respective NIW periods:


NIW Period						Ceding Percentage
January 1, 2025 to Present						50%
January 1, 2021 to December 31, 2024						35%
Prior to January 1, 2021						25%

The effect of reinsurance on net premiums written and earned is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2025		2024		2025		2024
Net premiums written:
Direct	$	280,796	$	277,754	$	828,062	$	819,595
Ceded (1)	(38,968)		(34,789)		(106,475)		(92,524)
Net premiums written	$	241,828	$	242,965	$	721,587	$	727,071

Net premiums earned:
Direct	$	285,300	$	283,725	$	847,464	$	838,941
Ceded (1)	(38,968)		(34,789)		(106,475)		(92,524)
Net premiums earned	$	246,332	$	248,936	$	740,989	$	746,417

(1)Net of profit commission.

The following table summarizes Essent Guaranty's quota share reinsurance agreements as of September 30, 2025:

QSR Agreement

Coverage Period

Ceding Percentage

QSR-2019

September 1, 2019 - December 31, 2020

(1)

QSR-2022

January 1, 2022 - December 31, 2022

20%

QSR-2023

January 1, 2023 - December 31, 2023

17.5%

QSR-2024

January 1, 2024 - December 31, 2024

15%

QSR-2025

January 1, 2025 - December 31, 2025

25%

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(1)Under QSR-2019, Essent Guaranty cedes 40% of premiums on singles policies and 20% on all other policies.

Schedule of Coverages and Retentions

The following table summarizes Essent Guaranty's excess of loss coverages and retentions provided by insurance linked notes as of September 30, 2025:



(In thousands)


Deal Name	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Remaining Reinsurance in Force		Remaining First Layer Retention		Optional Termination Date
Radnor Re 2021-1	Aug. 2020 - Mar. 2021	$	19,739,682	$	5,468,250	$	114,739	$	276,517	June 26, 2028
Radnor Re 2021-2	Apr. 2021 - Sep. 2021	25,483,612		7,221,803		209,214		273,314		November 25, 2027
Radnor Re 2022-1	Oct. 2021 - Jul. 2022	25,108,189		6,942,042		140,407		295,115		September 25, 2028
Radnor Re 2023-1	Aug. 2022 - Jun. 2023	25,659,356		7,054,365		227,315		274,987		July 25, 2028
Radnor Re 2024-1	Jul. 2023 - Jul. 2024	26,433,237		7,318,400		282,240		255,938		September 25, 2029
Total		$	122,424,076	$	34,004,860	$	973,915	$	1,375,871

The following table summarizes Essent Guaranty's excess of loss reinsurance coverages and retentions provided by panels of reinsurers as of September 30, 2025:


(In thousands)



Deal Name	Vintage	Remaining Insurance in Force		Remaining Risk in Force		Remaining Reinsurance in Force		Remaining First Layer Retention		Optional Termination Date
XOL 2019-1	Jan. 2018 - Dec. 2018	$	3,917,343	$	1,034,525	$	76,144	$	241,999	February 25, 2026
XOL 2020-1	Jan. 2019 - Aug. 2019	5,062,931		1,340,666		29,152		210,860		January 25, 2027
XOL 2022-1	Oct. 2021 - Dec. 2022	57,047,820		15,687,589		141,992		480,893		January 1, 2030
XOL 2023-1	Jan. 2023 - Dec. 2023	33,592,906		9,329,166		36,627		361,520		January 1, 2029
XOL 2024-1	Jan. 2024 - Dec. 2024	37,239,040		10,243,450		58,005		330,808		January 1, 2030
XOL 2025-1	Jan. 2025 - Dec. 2025	33,292,085		8,918,226		62,428		265,700		January 1, 2031
Total		$	170,152,125	$	46,553,622	$	404,348	$	1,891,780

Schedule of VIE Assets and Total Maximum Exposure to Loss

The following table presents total assets of each Radnor Re special purpose insurer as well as our maximum exposure to loss associated with each Radnor Re entity, representing the fair value of the embedded derivatives, using observable inputs in active markets (Level 2), included in other assets (other accrued liabilities) on our condensed consolidated balance sheet and the estimated net present value of investment earnings on the assets in the reinsurance trusts, each as of September 30, 2025:


			Maximum Exposure to Loss
(In thousands)	Total VIE Assets		On - Balance Sheet		Off - Balance Sheet		Total
Radnor Re 2021-1 Ltd.	$	114,739	$	(5,637)	$	7	$	(5,630)
Radnor Re 2021-2 Ltd.	209,214		(6,301)		32		(6,269)
Radnor Re 2022-1 Ltd.	140,407		(403)		23		(380)
Radnor Re 2023-1 Ltd.	227,315		56		40		96
Radnor Re 2024-1 Ltd.	282,240		35		62		97
Total	$	973,915	$	(12,250)	$	164	$	(12,086)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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